1) NEFT:
National Electronic Funds Transfer This was launched by the RBI in 2005. Under this electronic funds transfer system,bulk transfer of transactions is settled in batches during specific timings across India.Individuals and institutions which maintain accounts with a NEFT enabled bank branch are eligible for using NEFT.Transactions do not occur under real time basis.Once in every half hour from 8.00 am to 7.30 pm.23 settlements are allowed in a day.NEFT transfers are not allowed on Sundays and bank holidays.Both NEFT and RTGS use IFSC (Indian Financial System Code) - a 11 digit alphanumeric code,to identify a bank branch. IFSC is provided by IDRBT (Institute for Development & Research on Banking Technology),Hyderabad.
2) RTGS:
Real Time Gross Settlement Systems It was launched by the RBI in 2013.The transactions are settled on real time basis.Gross settlement means the transaction is settled between one bank and another bank without adding any other transactions.RTGS facility is available between 9.00 am to 4.30 pm on weekdays and up to 2.00 pm on Saturdays.In one day the RTGS routes about 60,000 transactions worth about 2,700 billion and covers over 52,000 bank branches located in 10,000 cities and towns. RTGS transfers are not allowed on Sundays and bank holidays.Minimum limit for RTGS transaction is 2 lakhs.
3) Electronic Clearing Services (ECS):
ECS was launched by the RBI in 1995. It is an electronic method of fund transfer from a commerce 1-15.indd 112 24-03-2018 12:56:55 113 bank to another bank.ECS credit can be used to credit salary,dividend,interest,pension etc.and ECS debit is used to debit monthly telephone bills, electricity bills, equated monthly instalments (EMI) payments.For this purpose the account holding individuals and institutions concerned should fill up certain forms and submit to the banks.ECS transactions between banks are settled in the current account maintained in the clearing house.
4) CORE Banking Solutions:
'CORE' stands for 'Centralized Online Real time Exchange'.In the centralized server of the bank,all the details of all the accounts of all the branches of the bank are available.A customer can withdraw money through cheque at any branch of that bank throughout the world.Similarly anyone can deposit money into the account.Entry of the transactions is recorded in the centralized server of the bank in real time and can be seen in all the branches of the bank.This facility is called core banking solutions.
5) Internet Banking or Virtual Banking:
Internet banking refers to performing banking operations through internet,using computers and mobile phone.This can be done by a customer from home or office or any part of the world and all 24 hours of 7 days.

(i) More Production and Economic growth:
(1) These Banks supply the Vitamin money to all sectors of the economy including manufacturing sector.
(2) As a result all the sectors produce more.
(ii) Capital Formation:
(1) Banks encourage savings habit among people and accumulate their small dormant savings.
(2) These funds can be fruitfully channelised for productive purposes of the Economy.
(iii) Consortium Finance :
(1) Thousands of crores required to establish a mega factory is not available from a single source.
(2) Banks join together and provide consortium Finance in such cases.
(iv) Service coverage to Non-monetised sector:
(1) Banks transfer funds from Surplus areas and make them available in scarce districts or areas for the formation and operation of Business institutions.
(2) Even growth of different regions can be achieved through this function.
(v) Smoothing of Trade and Commerce:
(1) For the efficient functioning of all traders and Business institutions in a country, safe keeping of their funds, transfer of funds, payment and collection of funds when and where needed is very much necessary. Banks perform this function.
(vi) Development of industry, agriculture, MSME's and SHG's :
(1) Banks design methods and instruments of Financing each sector differently.
(2) They provide finance for small farmers, medium traders as well as industries.
(3) For Example : Banks allow micro credit to SHGs, overdraft to traders and issue of certificate of deposits to finance industries.
(Vii) Implementation of Monetary Policy :
(1) Banks have established customer relationship with all public and business institutions through the network of branches.
(2) Broad guidelines or rules of the government for the monetary sector of a country cannot be applied without such banks.
(viii) Encourages Export and International Trade:
(1) Banks open Foreign branches or establish correspondent relationship with banks in Foreign countries to help Exporters.
(2) Instruments like letter of Credit and International factoring services are undertaken to help Exporters and Importers.
(ix) New Entrepreneurs and Employment  opportunities :
(1) Entrepreneurs obtain project loans and establish new Business.
(2) By providing the required credit banks generate more economic activities and new employment opportunities.

(i) NEFT - National Electronic Fund Transfer:
(1) Under this Electronic Fund transfer system, Bulk transfer of funds are settled in batches during specific timings across the country.
(2) The Individual and institutions which maintain Account with NEFT enabled the bank branch are for using NEFT.
(ii) RTGS - Real Time Gross Settlement System:
(1) Under this system, the transactions are settled on real time basis.
(2) Gross settlement means the transaction is settled between one Bank and another Bank without adding any other transactions.
(iii) Electronic clearing Services (ECS) :
(1) It is an Electronic method of fund transfer from a Bank to another bank.
(2) ECS credit can be used to credit salary, Dividend, Interest, pension, etc. and ECS Debit is used to Debit monthly Telephone Bill, Electricity Bill, equated monthly instalments (EMI) payments, etc.
(iv) Core-Banking Solutions:
(1) CORE stands for centralised online Real time Exchange.
(2) It means the centralised server of the Bank, all details of, all Accounts of, all the branches of the bank are available.
(3) A customer can withdraw money through cheque at any branch of that Bank throughout the world.
(4) Similarly anyone can Deposit money into the Account.
(v) Internet Banking or Virtual Banking:
(1) Internet Banking refers to performing Banking operations through Internet, using computers and mobile phone.
(2) This can be done by a Customer from his home or office or any part of the world and all 24 hours of 7 days.
(vi) Mobile Banking:
(1) Most of the commercial Banks have designed computer programmes called 'Apps' which can be downloaded in smart phones.
(2) With this 'Apps' in the smart phones a customer can operate his Account transactions from anywhere. This service is known as Mobile Banking.
(vii) ATM and CDM facilities:
(1) A customer can withdraw money any time, anywhere in India from the ATM Machine using the ATM Card given by the Bank.
(2) CDM - Cash Deposit Machine facilities is useful to the Public as well as customers to Deposit Cash in to the Account at any time.
(3) Like cheque depository machine accepts cheques at any time.
(viii) IMPS:
(1) IMPS means immediate payment service.
(2) This service allows funds transfer through Mobile phone or Internet Banking by Banking Customers and approved Non-banking partners. Its transactions are on real time basis.
(ix) Funds transfer through SMS :
(1) Under this service. the funds can be transferred from any account of the customers.
(2) Through this system SMS Alert Services also provided by the Bank.
(x) Debit Card:
(1) ATM Card is called Debit Card.
(2) This Card is most useful for purchase of goods and services anywhere in India, if the shop maintains a swiping machine facility.
(xi) Credit Card :
(1) Bank issues Credit card to customers and other eligible persons. With this Card, the holder can purchase goods and services on Credit at any shop in India.
(2) If the dues are paid within the stipulated time no interest is charged.
(3) The credit limit is fixed by the issuing Bank based on the Income of the Card holder.

(i) Housing Loan :
(1) Taking the title deeds of the house as collateral security, based on the monthly incomes of the borrowing customers, Banks advance medium and long term loans.
(2) The customer has to repay the loan in equated monthly instalments (EMI).
(ii) Consumer Loans:
(1) Consumer durables like Refrigerator, Air conditioner, Laptop, Washing Machine, Televisions, etc. can be purchased by customers with the consumer loans from Banks.
(2) The product purchased is hypothecated as security for the consumer loan amount.
(3) The customer pays in equated monthly instalments for a specified period.
(iii) Vehicle Loans:
(1) Two Wheelers, Cars, Buses and other vehicles can be purchased by individuals as well as institutions obtaining vehicle loans from the Banks.
(2) Vehicles are hypothecated to the Bank until the entire loan amount is repaid.
(iv) Educational Loan:
(1) Loan is provided by Banks to students for studying undergraduate or professional courses.
(2) Loan may be received in instalments to pay the educational fees every year.
(3) After the completion of the course one year is allowed for the students to get employed.
(4) Afterwards, the student should repay the loan with interest for the entire period.
(5) Interest is charged from the date of first instalment of loan amount payment.
(v) Jewel Loan:
(1) Customers pledge their gold jewels and obtain loans from Banks.
(2) The Margin (percentage of value per gram that can be given as credit) requirement is fixed by the RBI.
(3) Interest should be paid every month. Within 12 months the Customer can redeem or else can re-pledge.
(4) Jewels not redeemed even after reminders are sold in auction by Banks to recover their dues.

(i) Bank Assurance:
(1) It refers to the offering of Insurance policies or products by a Bank in Association with another Insurance Company.
(2) Corporation Bank, Oriental Bank of Commerce, and Vijaya Bank has tied up with Life Insurance Corporation of India.
(ii) Merchant Banking:
(1) Merchant Banks do not provide regular Banking services.
(2) A commercial Bank or its subsidiary Merchant Bank may offer services like project counselling, underwriting, etc. are required for starting a Company.
(iii) Retail Banking (personal Banking):
(1) It refers to mass Market Banking which reaches out to large number of individual end customers.
(2) Apart from accepting Deposits, their services include Personal loans, Vehicle loans, Consumer durable loans, Loans against Shares, Debit and Credit cards, Mortgage, etc.
(iv) Housing Finance:
(1) Housing Finance is provided against the Security of immovable property of Land and Buildings·.
(2) Many Banks such as SBI, Bank of India, etc. have set-up housing Finance subsidiaries.
(v) Mutual Fund:
(1) It is a Financial Intermediary that pools the Savings of Investors for collective investment in diversified portfolio securities in the Capital Market and money Market.
(2) Many Banks like SBI, Indian Bank, etc. have set-up Mutual Fund subsidiaries.
(vi) Venture Capital Fund:
(1) Venture Capital Fund provides start-up share capital to new ventures of little known, unregistered, risky, young and small private Business, especially in technology oriented and knowledge intensive Business.
(2) Many commercial banks like SBI, Canara Bank, etc. have set up venture Capital Fund subsidiaries.
(vii) Factoring:
(1) Factoring is a continuous arrangement between a Financial Intermediary (factor) and a Business concern (Client) whereby the factor purchase the clients accounts receivable.
(2) Banks like SBI and Canara Bank have established subsidiaries to provide factoring services.